Why are certain cities more attractive to investment than others? And are investors selecting the right ones for the future? One of the key factors behind a city’s success lies in its population demographic. Large city populations, for example, create demand for many types of real estate, while growing workforces will tend to point to high GDP growth potential. A high ratio of millennials to boomer generation citizens will tend to mean lower elderly dependency ratios, and a larger and potentially tech-savvy, productive workforce.
Savills World Research has combined data of city population size, forecast growth rates, workforce growth rates, dependency ratios and millennial-to-boomer ratios to create the Savills Demographic Strength Index, an indicator of real-estate performance potential across 25 global cities. You can see how they perform, in terms of each category as well as their overall score, in the Index below.
Source: Savills World Research, Oxford Economics